Robinhood Stock Soars After Announcing Acquisition of Bitstamp Crypto Exchange

Robinhood stock saw a significant boost on Thursday following the announcement of its plans to acquire cryptocurrency exchange Bitstamp. The mobile broker revealed that it would be purchasing Bitstamp for approximately $200 million in cash, marking its first foray into the institutional business sector.

Bitstamp, based in London, holds over 50 active licenses and registrations globally, offering a range of services for both institutional and retail clients. The acquisition is expected to accelerate the expansion of Robinhood Crypto, bringing in customers from regions such as the European Union, U.K., U.S., and Asia. The deal is set to be finalized in the first half of 2025, pending regulatory approval.

Following the news, Robinhood’s stock (HOOD) surged by 6.5% on Thursday, extending above a buy zone for a cup base. The stock has already seen an impressive 80.3% increase in value this year, driven by factors such as the resurgence of meme stocks, bitcoin ETF launches, and rising cryptocurrency prices.

In comparison, crypto exchange Coinbase (COIN) also experienced a 2.3% increase in its stock price on Thursday. Coinbase is currently working its way up the right side of a 10-week cup base with a 283.48 buy point, showing a 47.8% increase year to date.

Meanwhile, the price of bitcoin fluctuated around $70,600 on Thursday, after briefly reaching $71,200 earlier in the day. Bitcoin has seen a 68% increase in value this year, hitting a record high of $73,798 in March.

Overall, the acquisition of Bitstamp by Robinhood has generated positive momentum for both companies, reflecting the growing interest and investment in the cryptocurrency market. Investors will be closely watching how this strategic move plays out in the coming months.